TENNESSEE AFFILIATE BROKER EVALUATION EXAM 2026
QUESTIONS AND ANSWERS GRADED A+
✔✔hours of education required for new broker to complete prior to 3rd anniversary -
✔✔120
✔✔broker and affiliate broker CEU requirements per 2 year licensing period - ✔✔16hrs
✔✔$50 - ✔✔penalty per 30 day period prior to 120 days for licensing lapse
✔✔$100 - ✔✔penalty per 30 day period beginning on 121st day but prior to 1 year
✔✔$50 - ✔✔change of address fee
✔✔10 days - ✔✔amount of time licensees have to notify TREC of change of firm
address
✔✔requirement for educator - ✔✔4 year term and college degree
✔✔$80 - ✔✔license renewal fee
✔✔Renewal Deadline - ✔✔60 days prior to expiration date
✔✔Uniform Administrative Procedures Act. - ✔✔- act that TREEC members must
operate within
✔✔10 days - ✔✔amount of time a licensee has to respond to a TREC complaint
✔✔term for TREC member - ✔✔5 years
✔✔7 - ✔✔number of TREC members required to have 5 years of real estate experience
or more
✔✔class b misdemeanor - ✔✔license law violations classified as
✔✔the maximum civil penalty imposed for a single occurrence of a license law violation
- ✔✔is 50 to 1,000 per separate violation (per day)
✔✔the commission automatically revokes the licensee's license - ✔✔60 days after
conviction
✔✔500,000 - ✔✔minimum account balance for the real estate education and recovery
fund
,✔✔30,000 - ✔✔maximum lifetime payout per licensee
✔✔15,000 - ✔✔the maximum payout any consumer can receive from the Real estate
education and recovery fund/maximum award per transaction no matter amount of
judgements or number of complainants
✔✔seven protected classes: - ✔✔race, color, religion, national origin, sex, familial
status, and disability.
✔✔must be in place prior to executing a listing agreement or you are guilty of
misrepresentation - ✔✔listing agreement and disclosure of agency status
✔✔Required for all sales contracts and listing agreements in TN - ✔✔termination date
✔✔net listing - ✔✔type of listing that specifies a sales price the owner wants, with
anything in excess of that amount going to the broker as commission (illegal in TN)
✔✔Agent - ✔✔Someone who acts on someone else's behalf, at that person's request.
✔✔Customer - ✔✔The agency relationship determines client vs. customer. Without an
agency agreement, the consumer is a customer and receives no representation.
✔✔Client - ✔✔Only a client receives agency representation under an agency
agreement.
✔✔Principal - ✔✔A customer is a principal when he or she is a party to a transaction
(e.g., buyer or seller).
✔✔fiduciary - ✔✔a person who's in a position of trust and owes loyalty to another.
✔✔the only way to create agency in TN - ✔✔bilateral written agreement
✔✔two duties that survive agency - ✔✔accounting and confidentiality
✔✔disclosure of agency status - ✔✔MUST be made prior to providing any real estate
services
✔✔Exclusive Right to Represent - ✔✔This is the highest level of representation, similar
to an exclusive listing agreement. The agent named on the agreement is assured of a
commission if the buyer locates a property within the term of the agreement.
, ✔✔Exclusive Agency - ✔✔buyers are represented by a single brokerage but reserve
the right to self-represent. If the broker locates the property, he or she earns the
commission. If the buyer found the home, no one owes commission to the broker.
✔✔Open Agency - ✔✔This allows a buyer to work with several buyer representatives
(or to self-represent). Only the brokerage completing the transaction receives a
commission. This gives the buyer flexibility but limits the amount of representation from
any one professional.
✔✔Percolating Rights - ✔✔Rights of the owners to draw water from underground wells
✔✔Risparian Rights - ✔✔Rights of the owners of bordering property to use flowing body
of water such as river or creek
✔✔Littoral Rights - ✔✔rights of the owners of bordering property to use stationary body
of water such as lake or sea.
✔✔Prior appropriation - ✔✔doctrine granting water rights based on which entity was
first to put given body of water to beneficial use rather than based on the adjacency of
water to given property
✔✔fixture - ✔✔anything permanently attached to land that's a part of real property
unless parties negotiate differently
✔✔chattel - ✔✔another word for personal property
✔✔Five legal tests courts used to determine whether something is real property or
personal property? - ✔✔Method of annexation, relationship of the parties, intentions of
the annexing party, agreement of the parties, and adaptability
✔✔emblements - ✔✔Cultivated crops (considered personal property even though
they're attached to the soil)
✔✔Emblements - ✔✔Cultivated crops (considered personal property even though
they're attached to the soil)
✔✔Severance - ✔✔When an item that was real property becomes personal property
through detaching it from the land
✔✔Annexation - ✔✔When personal property is attached to real property, making it a
fixture
QUESTIONS AND ANSWERS GRADED A+
✔✔hours of education required for new broker to complete prior to 3rd anniversary -
✔✔120
✔✔broker and affiliate broker CEU requirements per 2 year licensing period - ✔✔16hrs
✔✔$50 - ✔✔penalty per 30 day period prior to 120 days for licensing lapse
✔✔$100 - ✔✔penalty per 30 day period beginning on 121st day but prior to 1 year
✔✔$50 - ✔✔change of address fee
✔✔10 days - ✔✔amount of time licensees have to notify TREC of change of firm
address
✔✔requirement for educator - ✔✔4 year term and college degree
✔✔$80 - ✔✔license renewal fee
✔✔Renewal Deadline - ✔✔60 days prior to expiration date
✔✔Uniform Administrative Procedures Act. - ✔✔- act that TREEC members must
operate within
✔✔10 days - ✔✔amount of time a licensee has to respond to a TREC complaint
✔✔term for TREC member - ✔✔5 years
✔✔7 - ✔✔number of TREC members required to have 5 years of real estate experience
or more
✔✔class b misdemeanor - ✔✔license law violations classified as
✔✔the maximum civil penalty imposed for a single occurrence of a license law violation
- ✔✔is 50 to 1,000 per separate violation (per day)
✔✔the commission automatically revokes the licensee's license - ✔✔60 days after
conviction
✔✔500,000 - ✔✔minimum account balance for the real estate education and recovery
fund
,✔✔30,000 - ✔✔maximum lifetime payout per licensee
✔✔15,000 - ✔✔the maximum payout any consumer can receive from the Real estate
education and recovery fund/maximum award per transaction no matter amount of
judgements or number of complainants
✔✔seven protected classes: - ✔✔race, color, religion, national origin, sex, familial
status, and disability.
✔✔must be in place prior to executing a listing agreement or you are guilty of
misrepresentation - ✔✔listing agreement and disclosure of agency status
✔✔Required for all sales contracts and listing agreements in TN - ✔✔termination date
✔✔net listing - ✔✔type of listing that specifies a sales price the owner wants, with
anything in excess of that amount going to the broker as commission (illegal in TN)
✔✔Agent - ✔✔Someone who acts on someone else's behalf, at that person's request.
✔✔Customer - ✔✔The agency relationship determines client vs. customer. Without an
agency agreement, the consumer is a customer and receives no representation.
✔✔Client - ✔✔Only a client receives agency representation under an agency
agreement.
✔✔Principal - ✔✔A customer is a principal when he or she is a party to a transaction
(e.g., buyer or seller).
✔✔fiduciary - ✔✔a person who's in a position of trust and owes loyalty to another.
✔✔the only way to create agency in TN - ✔✔bilateral written agreement
✔✔two duties that survive agency - ✔✔accounting and confidentiality
✔✔disclosure of agency status - ✔✔MUST be made prior to providing any real estate
services
✔✔Exclusive Right to Represent - ✔✔This is the highest level of representation, similar
to an exclusive listing agreement. The agent named on the agreement is assured of a
commission if the buyer locates a property within the term of the agreement.
, ✔✔Exclusive Agency - ✔✔buyers are represented by a single brokerage but reserve
the right to self-represent. If the broker locates the property, he or she earns the
commission. If the buyer found the home, no one owes commission to the broker.
✔✔Open Agency - ✔✔This allows a buyer to work with several buyer representatives
(or to self-represent). Only the brokerage completing the transaction receives a
commission. This gives the buyer flexibility but limits the amount of representation from
any one professional.
✔✔Percolating Rights - ✔✔Rights of the owners to draw water from underground wells
✔✔Risparian Rights - ✔✔Rights of the owners of bordering property to use flowing body
of water such as river or creek
✔✔Littoral Rights - ✔✔rights of the owners of bordering property to use stationary body
of water such as lake or sea.
✔✔Prior appropriation - ✔✔doctrine granting water rights based on which entity was
first to put given body of water to beneficial use rather than based on the adjacency of
water to given property
✔✔fixture - ✔✔anything permanently attached to land that's a part of real property
unless parties negotiate differently
✔✔chattel - ✔✔another word for personal property
✔✔Five legal tests courts used to determine whether something is real property or
personal property? - ✔✔Method of annexation, relationship of the parties, intentions of
the annexing party, agreement of the parties, and adaptability
✔✔emblements - ✔✔Cultivated crops (considered personal property even though
they're attached to the soil)
✔✔Emblements - ✔✔Cultivated crops (considered personal property even though
they're attached to the soil)
✔✔Severance - ✔✔When an item that was real property becomes personal property
through detaching it from the land
✔✔Annexation - ✔✔When personal property is attached to real property, making it a
fixture
